WATCH: Why institutional money is saving Grace for the rental market


Even though investors have slowed spending, single-family rentals are in a stable position and will likely help sustain it, Doug Brien of rental platform Mynd told Inman Connect.

WATCH: Single-family rental expert says institutional capital is a good thing

WATCH: Investor cash inflow is good for single-family rental market, expert says

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Real estate industry experts have been talking about a market downturn for some time now as house prices and mortgage rates have given a number of homeowners pause in the market.

But Doug Brien, co-founder and CEO of single-family rental (SFR) platform Mynd, said during a panel at Inman Connect Las Vegas that while investors have also slowed in the SFR space, the industry is always in a stable position. .

“The industry — single-family rental — has only grown,” Brien said. “If you just look at the trends, quarter after quarter, more and more institutional capital, more and more retail investors want to invest in real estate, and companies like Mynd are making it easier.”

“Investors are still there, but they’re definitely hit by rates,” Brien added.

Amid SFR’s rapid growth in recent years, panel moderator and Inman reporter Jim Dalrymple II also pointed out that some industry players are critical of investors buying up large swathes of homes in the states. States and potentially contribute to price volatility in the market because these institutional investors can afford to pay higher prices. But Brien disagreed, arguing instead that investors create stability in the market during times of uncertainty, such as the 2008 financial crisis.

“I don’t know if I’m totally okay with that,” Brien said. “One thing that I strongly believe would be the opposite of volatility is really stability – if you look at what happened in the foreclosure crisis where you had all these defaulted loans and there’s no there was literally no one to buy – that was the impetus for the creation of this industry.”

“Now that institutions are in single-family rentals and they’re creating positions, like you can look at a lot of different industries – when institutions come in, they don’t go out,” he continued. “So now you have this wall of capital that would still be there if prices, for whatever reason, were to fall precipitously like they did.”

Dalrymple questioned whether corporations now owning such a high percentage of homes in the United States were preventing everyday Americans from participating in the American Dream, but Brien refuted, saying instead that he offered an alternative to what dream, many young people delaying home ownership today. and want to get around more easily.

“I think there’s kind of a questioning of the American Dream going on right now – it’s not that people don’t aspire or shouldn’t aspire to own a home, we’re just people who put it off. this decision for a number of reasons.”

See how the conversation ended by watching the video above.

Email to Lillian Dickerson


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